Media releases

DRDGOLD declares 20 cents per share interim dividend – 15th successive year of distribution

Details

Published: Wednesday, 16 February 2022 08:00

Johannesburg, South Africa. 16 February 2022. DRDGOLD Limited (JSE: DRD, NYSE: DRD) has declared an interim dividend of 20 cents per share for the six months ended 31 December 2021.

DRDGOLD’s CEO Niël Pretorius commented on the first six months of FY2022: “We are pleased to report a strong finish, attributable mainly to an increase in gold recoveries and a higher average gold price compared to the first three months of the period.”

“These contributed to headline earnings per share of 58.0 cents and free cash inflow of R406.9 million for the half year. The Group ended the financial period with cash and cash equivalents of R2 239.1 million, after paying a cash dividend of R345.5 million in September 2021. This has enabled us to declare an interim dividend of 20 cents per share, without inhibiting our capital investment programme and taking the number of years of uninterrupted dividend yield to 15.”

Steady performances at both Ergo and Far West Gold Recoveries resulted in gold production exceeding forecasts by just over 5 980oz, softening the impact of the depletion of higher-grade reserves at Ergo and setting the business up favourably to achieve full-year production guidance.

Compared to the six months ended 31 December 2020, Group revenue decreased by 16% to R2 498.5 million mainly due to a 13% decrease in the average Rand gold price received to R863 108/kg as well as a 4% decrease in gold sold to 2 891Kg. Group operating profit decreased by 42% to R832.0 million from R1 441.8 million, after accounting for cash operating costs, being 11% higher at R1 680.2 million.

The Company remains free of bank debt as at 31 December 2021.

Looking forward

With the view of reducing its carbon footprint as well as addressing the uncertainty of the supply and cost of electricity, the Company took the decision to construct a solar power plant and a power storage facility at Ergo. The Board has approved the capital expenditure for the first phase, comprising an upgrade to the existing supply line to the Brakpan/Withok Tailings Storage Facility to an 88KVA line, the construction of an initial 20MW PV plant and ten power storage facilities of 10MW each. 

Investor and media relations queries:

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Jane Kamau
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